Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Duke Energy Analyst Conference 2003
13 slides from Duke Energy Corporation (Holding Company)'s conference presentation, May 30, 2003
Slide 1: Financial Review
Financial Review Robert Brace Executive Vice President and Chief Financial Officer
Slide 2: Disclosures
Disclosures Safe Harbor Statement Under the Private Securities Litigation Act of 1995 This document contains forward looking information which is subject to risks and uncertainties, including, but not limited to, changes in the utility regulatory environment, the impact of competition from other ene
Slide 3: Addressing the Strategic Directives
Addressing the Strategic Directives 6 Strategic Directives Finance Focus on positive net Generating strong regulated cash 1 cash generation flows, selling non-strategic assets Invest in our strongest Focusing capital expenditures on 2 business sectors strongest businesses Size businesses to Reducing
Slide 4: Focus on Positive Net Cash Generation
Focus on Positive Net Cash Generation • Strong cash flows and earnings supported by regulated operations • Gross proceeds from sales of non-core, non-strategic assets will reach approximately $1.5 billion in 2003 • Incremental savings from lower operating expenses • Positive cash flow will be used t
Slide 5: 2003 Cash Flow: Exceeding Expectations (Duke Energy Consolidated)
2003 Cash Flow: Exceeding Expectations ($ in millions) Duke Energy Consolidated Primary Sources: 2003 2004 2005 Income (see note below) $ 1,400 $ 1,400 $ 1,400 Depreciation & amortization 1,900 2,100 2,200 NBV of ongoing Crescent sales 500 400 450 NBV of non-strategic asset sales 1,300 600 -- Deferr
Slide 6: 2003 Cash Flow: Exceeding Expectations (Duke Capital Consolidated)
2003 Cash Flow: Exceeding Expectations ($ in millions) Duke Capital Consolidated Primary Sources: 2003 2004 2005 Income (see note below) $ 750 $ 750 $ 750 Depreciation & amortization 1,100 1,100 1,100 NBV of ongoing Crescent sales 500 400 450 NBV of non-strategic asset sales 1,300 600 -- Deferred in
Slide 7: Capital Expenditures
Capital Expenditures • Base layer of maintenance capex is $1.7 billion Regulated $ 1.4 billion Unregulated $ 300 million 2003 Capex $2.0 • Limited expansion capex Expansion Pipelines $ 450 million Maintenance $1.5 Crescent Resources $ 425 million $ in billions DENA $ 375 million $1.0 Oth
Slide 8: Debt Reduction
Debt Reduction • We expect to reduce total debt • Remainder of expected debt and trust preferred securities by reductions $5.5 billion by the end of 2005 Reduce commercial paper • $5.4 billion of long-term debt will balances mature over the next three years of Repurchase debt which a portion wil
Slide 9: Invest in Our Strongest Business Sectors
Invest in Our Strongest Business Sectors • 2003 Duke Power plant upgrades Pipeline projects Merchant generation construction • 1,860 MW in ECAR Crescent Resources • Ongoing real estate development and property sales • 2004 Duke Power plant upgrades Pipeline projects Crescent Resources
Slide 10: Size Businesses to Market Realities
Size Businesses to Market Realities • Focus on primary Gross businesses for gas Asset Sales ($ in millions) Proceeds and power Announced/Closed • Sweat assets for Empire Pipeline (1) $ 240 American Ref-Fuel 306 optimum value Alliance/Aux Sable 245 creation Northern Border units 24 TEPPCO units 114 •
Slide 11: Actions Taken to Enhance Financial Flexibility
Actions Taken to Enhance Financial Flexibility • Lowered capital expenditures • Established collateral limits • Issued convertible debt totaling $770 million • Paying down commercial paper • Maintaining cash balances 11
Slide 12: Earnings Guidance
Earnings Guidance 2003 EPS: $1.35 - $1.60 earnings per share Excludes 1Q03 charge of 18¢ related to the cumulative effect of change in accounting principles related to the implementation of EITF 02-03 and the adoption of FAS 143 2003 Segment Earnings Before Interest and Taxes* Franchised Electric $1
Slide 13: Financial Summary
Financial Summary • Solid progress toward achieving 2003 strategic directives First quarter results exceeded expectations Regulated businesses will continue to provide strong earnings and cash flows Debt and trust preferred reductions expected to reach $1.8 billion Continued focus on reducin